{"id":6218,"date":"2025-10-03T15:36:21","date_gmt":"2025-10-03T15:36:21","guid":{"rendered":"https:\/\/friscotimes.org\/?p=6218"},"modified":"2025-10-04T03:44:23","modified_gmt":"2025-10-04T03:44:23","slug":"millennials-and-gen-zers-are-clamoring-to-break-into-the-housing-market-but-this-real-estate-expert-says-not-everyone-should-be-an-owner","status":"publish","type":"post","link":"https:\/\/friscotimes.org\/?p=6218","title":{"rendered":"Millennials and Gen Zers are clamoring to break into the housing market. But this real estate expert says \u2018not everyone should be an owner\u2019"},"content":{"rendered":"\n

Millennials and Gen Z are clamoring to break into the housing market\u2014a feat seemingly impossible in an inflationary period with high home prices and mortgage rates. But one real estate veteran says owning a home might not be all it\u2019s cracked up to be right now.<\/p>\n

\n

\u201cIf your whole thinking is like, \u2018Oh, I should buy a home because I\u2019m at that age, and I should buy a home,\u2019 I don\u2019t think that\u2019s a good reason to own a home,\u201d Amir Korangy<\/a>, founder, chairman, and publisher of real estate news site The Real Deal<\/a>, told Fortune. <\/em>Korangy is also an associate professor at Columbia University\u2019s School of Architecture<\/a> and a senior fellow and adjunct professor at NYU\u2019s Schack Institute of Real Estate<\/a>.<\/p>\n

Research<\/a> this year from mortgage tech firm ServiceLink<\/a> shows Gen Z and millennials have a \u201cstrong appetite for homeownership,\u201d but many have had to abandon the American Dream owing to the cost. Mortgage rates are still in the 6% range, and home prices are 55% higher than they were at the beginning of 2020, according to the Case-Shiller U.S. National Home Price Index<\/a>.\u00a0<\/p>\n

For those reasons, it\u2019s often cheaper to rent than buy a home in today\u2019s housing market. A June report<\/a> from Realtor.com<\/a> shows renting saves more than $900 per month, on average, and that renting a home continues to be more affordable than buying in 49 of the 50 largest metros in the U.S. (Pittsburgh stands out as the only exception). That\u2019s why Korangy pushes the \u201cfreedom of renting\u201d\u2014especially to get more bang for your buck.<\/p>\n

\u201cYou could rent a much nicer space for yourself than you could own one,\u201d Korangy said. He gave the example of a wealthier buyer with a $3 million budget, and said for the same cost of buying that home, someone could rent a $5.5 million to $7 million home at the same monthly price.\u00a0<\/p>\n

\u201cIt just makes a lot more sense to rent,\u201d he said.\u00a0<\/p>\n

There are also a lot of hidden homeownership costs like insurance, repairs, property taxes, homeowners association fees (if applicable), and landscaping and exterior upkeep.\u00a0<\/p>\n

\u201cIt\u2019s not just the mortgage you\u2019re paying for,\u201d Korangy said. \u201cThere\u2019s all this stuff that\u2018s being added on to it. Yes, insurance is not that much, but insurance, when it goes up<\/a> \u2026 it adds up.\u201d<\/p>\n

Nationally, homeowners insurance prices are expected to spike 8% this year, but it\u2019s even more expensive to insure a home in Florida and California given the greater risks of extreme weather like flooding, hurricanes, and wildfires.<\/p>\n

Building home equity isn\u2019t what it used to be<\/h3>\n

One of the prime reasons for homeownership is the concept of building equity. By purchasing a home, you\u2019ll eventually build equity in that property that you can benefit from in the future when, or if, you decide to sell the home.\u00a0<\/p>\n

That was all fine and good as people watched home prices skyrocket thanks to growing demand in the aftermath of the pandemic housing boom. Purchasing a house allows owners to build wealth over time by making mortgage payments to reduce the loan principal and increase the owner\u2019s stake in the home until, ideally, it\u2019s owned outright. Real estate typically appreciates, which adds to the homeowner\u2019s wealth.<\/p>\n

But now that the market is slowly but surely correcting itself, homeowners aren\u2019t sitting on the same pile of equity they expected in recent years. In fact, home-price appreciation has been either broadly flat or falling<\/a> across the U.S.; the average American homeowner lost approximately $9,200 in equity during the past year, according to data from information services company Cotality (formerly CoreLogic).\u00a0<\/p>\n

To be sure, Leo Pond<\/a>, a real estate advisor with Four Seasons Sotheby\u2019s International Realty<\/a>, recently told Fortune <\/em>this isn\u2019t a collapse, but \u201ca long-term market correction.\u201d<\/p>\n

Korangy said as long as a person is okay with not building equity then renting would be the obvious choice.\u00a0<\/p>\n

Plus, you\u2019re \u201calso not connected to the market,\u201d he said. \u201cThat means [you] can pick up and leave anytime [you] want. If anything changes for [you, you\u2019re] not beholden to that. If something happens to the building, [you\u2019re] not beholden to that.<\/p>\n

\u201cSo there\u2019s a lot of goods that come with renting, and a lot of people are taking advantage of that,\u201d he added. \u201cAnd the fact is not everybody should be an owner.\u201d\n<\/p>\n<\/div>\n

Fortune Global Forum<\/strong> returns Oct. 26\u201327, 2025 in Riyadh. CEOs and global leaders will gather for a dynamic, invitation-only event shaping the future of business. Apply for an invitation.<\/div>\n\n","protected":false},"excerpt":{"rendered":"

Millennials and Gen Z are clamoring to break into the housing market\u2014a feat seemingly impossible in an inflationary period with high home prices and mortgage rates. But one real estate…<\/p>\n","protected":false},"author":109,"featured_media":6219,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[6],"tags":[3573,7439,1819,2290,228,4628,337,5849,3563,754,2231],"jetpack_publicize_connections":[],"yoast_head":"\nMillennials and Gen Zers are clamoring to break into the housing market. 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